LANSING – The Michigan Department of Transportation is negotiating a lower lease rate for 23 passenger railcars now costing taxpayers $3,000 a day to sit idle. But the length of time the state could have to lease the cars before it can use them has doubled from two years to four years, according to a report sent to state lawmakers.

At the current lease rates, that means MDOT would have to sink about another $4.4 million into lease charges before it is able to put the cars into service.

The Free Press on Feb. 1 broke the news of the idle railcars, which are intended for two proposed commuter services in southeast Michigan and so far have cost the state about $12 million in refurbishment, consulting and leasing costs since 2010.

MDOT spokesman Michael Frezell said Wednesday negotiations on lowering the cost of leasing the railcars are under way with their owner, Great Lakes Central Railroad. He wouldn’t give details on how much the lease rate might be reduced. Chris Bagwell, the railroad’s executive vice president and general manager, did not respond to an e-mail seeking comment.

At the same time as those talks are ongoing, MDOT is negotiating with up to four local governments in the U.S. and Canada about subleasing some or all of the cars to offset costs, the report said. The report recommends canceling the lease if subleases are not negotiated by June 30.

But the report sent to lawmakers, and shared with the Free Press, says “it appears unlikely that commuter rail service on either (route) will commence before second quarter 2019.” Until now, MDOT officials have said they hope to have at least one of the services running in 2017.

The double-decker cars, formerly used in Chicago-area Metra service, are intended for commuter services between Ann Arbor and Detroit and Ann Arbor and Howell. But neither service has been given a green light. There is no operator or operating funds for either service, and in the case of the Detroit-Ann Arbor line, even the tracks aren’t expected to be ready for two years.

According to the report sent to lawmakers, MDOT has “met with project leaders from both commuter rail service initiatives to emphasize the need for local financial support and realistic potential service operation start dates.”

Any change in the projected start dates is the result of input from local officials, since MDOT is facilitating the start of the commuter services but doesn’t ultimately call the shots on when any service might begin, Frezell said.

The handling of the railcars has sparked criticism of MDOT’s management of public funds as a May 5 election approaches on a proposed sales tax and fuel tax hike to give the state agency close to $1.3 billion a year more to fix and maintain the state’s crumbling roads and bridges.

MDOT officials, who blame changes in federal oversight and other reasons for delays in the commuter services, stress the money spent on the railcars could not have been spent on roads and bridges, because it came from a separate fund reserved for transit and rail projects.

Talks continue with as many as four unnamed local governments who might reduce MDOT’s costs by subletting some or all of the cars for the next three years.

“If MDOT is unable to solicit sufficient interest in short-term leasing ... by June 30, then a decision should be pursued to cancel the existing contract with Great Lakes Central Railroad,” MDOT said in the report.

The contract with Great Lakes Central, which has been extended several times since 2010, now runs until the end of this year. It can be terminated without cause with 30 days written notice.

According to the plan, even if it terminates the lease, MDOT would share in the proceeds of any sale or lease of the railcars by Great Lakes Central, because of the roughly $8.7 million MDOT has invested in the cars, counting engineering and refurbishment costs but not including lease charges.

MDOT estimates the cars, which Great Lakes Central purchased through Metra for about $114,000 each in 2004, might now be worth $1 million each.

The report outlines three options.

The first option, terminating the lease, would remove MDOT’s liability but could mean “a significant loss in investment in the cars,” since the agency would likely have to start procuring railcars in 2016 to meet the projected 2019 start dates for the commuter services, the report said.

A second option is to negotiate a reduced lease rate and sublet all 23 cars for the next three years, the report said. This would reduce costs while maintaining control of the cars until the commuter services are ready to go, the report said. The downside would be wear and tear on the cars that would reduce their useful life and the fact no cars would be available for demonstration purposes or sublets closer to home, the report said.

The third option outlined in the report involves negotiating a lower lease rate and subletting 17 of the cars, while holding back two cabs and four coaches for special events and other short-term purposes.